IRS updates frequently asked questions related to wrongful incarceration of a United States service member

IR-2023-211, Nov. 13, 2023

WASHINGTON — The Internal Revenue Service today issued frequently asked questions (FAQs) on Fact Sheet 2023-26 updating question 9 to reflect that wrongfully incarcerated United States service members cannot exclude certain payments from gross income.

Updated FAQ 9 now provides that a United States military service member who is a wrongfully incarcerated individual and who receives back pay following the reversal of a court martial conviction may not exclude the payments under the Wrongful Incarceration Exclusion if the payments are merely the restoration of pay and allowances to which the service member is entitled under the law.

These FAQs update question 9 to reflect this position.

More information about reliance is available.

IRS-FAQ